April 16 (SeeNews) - Bulgaria's Bravo Property Fund REIT [BUL:BPY] said on Tuesday that it has completed the procedure of increasing its capital by 36.05 million levs ($20.7 million/18.4 million euro) to 36.70 million levs.
The increase was entered into the commercial register on Monday, Bravo Property Fund REIT said in a statement.
Bravo Property Fund REIT intends to use the proceeds to partially finance the acquisition of an office building in Sofia for 71.4 million levs ($41.2 million/36.5 million euro) from local real estate company Office A.
The office building, located near The Mall shopping centre, has a total built-up area of 14,479 sq m with six storeys of office space, a ground floor, and two underground levels with 240 parking spots. The operation of the building is expected to generate annual revenue of at least 4.6 million levs, according to Bravo Property Fund REIT.
Bravo Property Fund REIT will go through with the deal if it successfully attracts financing of 42 million levs.
In addition to the capital increase, the company is planning to issue a five-year 30 million levs bond. The non-convertible issue will carry an annual coupon of up to 4%. The financial regulator has not yet approved the company's prospectus.
Bravo Property Fund REIT will also seek a one-year 12 million levs bank loan.
Office A is owned by two private investors - Asen Lisev and Pavel Kshonzhek, with stakes of 50% each. Pavel Kshonzhek controls his stake in Office A through his fully owned unit Black Sea Development.
Lisev is also the CEO and majority owner of Bravo Property Fund REIT.
(1 euro = 1.95583 levs)